Marvin Services Corporation Had the Following Accounts and Balances If the Balance of the Buildings Account Was $70000 and

question 144

Multiple Choice

Marvin Services Corporation had the following accounts and balances: $$\begin{array} { l r l r } \text { Accounts payable } & \$ 30,000 & \text { Equipment } & \$ 35,000 \\\text { Accounts receivable } & 5,000 & \text { Land } & 35,000 \\\text { Buildings } & ? & \text { Unearned service revenue } & 10,000 \\\text { Cash } & 15,000 & \text { Total stockholders' equity } & ?\end{array}$$ If the balance of the Buildings account was $70000 and $5000 of Accounts Payable were paid in cash what would be the balance of the total stockholders' equity?

• A)$135000
• B)$120000
• C)$170000
• D)$130000

Identify commonalities and differences in the value chains of service firms and merchandising entities.

Understand overhead cost components in service firms and their implications on pricing and cost management.

Understand the importance of managing service costs in service businesses for monitoring efficiency and planning resource requirements.

Understand and identify different types of costs in a manufacturing environment.

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Definitions:

Productive Resources

Essential inputs used in the production of goods and services, including land, labor, capital, and entrepreneurship.

Present Value

Today’s value of some amount of money that is to be received sometime in the future.

User Cost

The opportunity cost of extracting and selling a nonrenewable natural resource today rather than waiting to extract and sell the resource in the future; the present value of the decline in future revenue that will occur because a nonrenewable natural resource is extracted and sold today rather than being extracted and sold in the future.

Market Price

The current price at which a good or service can be bought or sold in a marketplace.